Earlier this morning, in our twice daily bitcoin price watch piece, we noted the levels that we would be looking at throughout todays session. We suggested that, as a result of the recent action we have seen in the bitcoin price, it would be difficult to form a quantifiable directional bias and that – as a result – we would bring our breakout strategy in to play with the goal of catching any solid movement to either the upside or the downside. Action has now matured throughout the session, and we did get some volatility as expected. The question is, did our predefined levels pick up a profit from this volatility, or did we get chopped out? Further, what are we looking at for this evenings Asian session? Take a quick look at the chart to get an idea of what went on.
As the chart shows, action remained relatively stable until shortly after midday (GMT) when price collapsed through our in term support and quickly broker to reach our downside target at 365.22. We could have probably drawn a slightly larger profit on this one given the extent to which price fell, but that’s how it goes!
The levels we are watching tonight have shifted down slightly – with in term support at 357.39 and resistance at 368.12. We will initially look for a continuation of the current bearish momentum to break support and validate a medium term downside target of 350 flat. A stop loss on this one somewhere in the 359 to 360 range should keep things attractive from a risk management perspective.
If, conversely, we correct to the upside and break back above in term resistance, it will put us in a long entry towards an initial upside target of 381. We can widen out our stop here – somewhere in the region of 364 should do the trick.
Charts courtesy of Trading View